{"id":97472,"date":"2001-11-20T00:00:00","date_gmt":"2001-11-20T05:00:00","guid":{"rendered":"https:\/\/alpha.pewresearch.org\/pewresearch-org\/2001\/11\/20\/part-1-introduction-16\/"},"modified":"2024-04-14T04:14:31","modified_gmt":"2024-04-14T09:14:31","slug":"part-1-introduction-16","status":"publish","type":"post","link":"https:\/\/alpha.pewresearch.org\/pewresearch-org\/internet\/2001\/11\/20\/part-1-introduction-16\/","title":{"rendered":"Part 1: Introduction"},"content":{"rendered":"<h3 data-is-section=\"true\" data-wp-context=\"{&quot;id&quot;:&quot;introduction&quot;}\" data-wp-interactive=\"{&quot;namespace&quot;:&quot;prc-block\\\/table-of-contents&quot;}\" id=\"introduction\" class=\"wp-block-heading\">Introduction<\/h3>\n\n<p class=\"wp-block-paragraph\">Communities and economic development groups across the country are exploring ways to encourage people and organizations to go online.\u00a0 They believe that good things will happen in their communities with greater Internet connectivity.\u00a0 They think it will help their children learn, improve the job skills of their workforce and make their community a more vibrant and productive place.\u00a0 In addition, people with Internet access will be better-informed citizens, able to make better use of government services and to play an active part in decisions that affect the future of the community to which they belong. Furthermore, \u201cwired\u201d communities will face a brighter economic future because they will offer attractive locations to businesses thinking about building new plants and offices.<\/p>\n\n<p class=\"wp-block-paragraph\">To date, there have been few studies about the specific impact of Internet access on any community&#8217;s economic and social life. To begin to explore this, the Pew Internet &amp; American Life Project joined with the Progress and Freedom Foundation to study both sides of the issue. The PFF looked at the economic side of the story; the Pew Internet Project looked at the social side of the story. The PFF has found that high levels of connectivity in communities are tied to some measurable factors. &#8220;Wired&#8221; communities have large numbers of high-income households, college-educated citizens, and young people. These kinds of communities have always tended to be prosperous, and there are interesting suggestions in the early PFF data that Internet connectivity helps enhance that prosperity but does not necessarily drive it.<\/p>\n\n<p class=\"wp-block-paragraph\">The Pew Internet Project\u2019s part of the study consists of cases studies in five communities\u2014Portland, Ore.; Austin, Texas; Cleveland, Ohio, Nashville, Tenn., and Washington, D.C.&#8211;to see what kind of change is occurring in social institutions. The one consistent finding in each of these cities is that the availability of the Internet is encouraging people and organizations to spend time thinking about how to exploit it. These new conversations, many of them spurred by grass-roots initiatives, have branched out in several directions.\u00a0 Here are some of the main lessons that have been learned: <\/p>\n\n<ul class=\"wp-block-list\">\n<li> <strong>Portland<\/strong> <\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\">Real changes in communities are evident in Portland as a result of a wide range of community Internet projects, some of them long-established. Portland\u2019s Neighborhood Pride Team, initially founded to revitalize a community in southeast Portland, has grown from one computer in 1995 to a skills center with 20 computers and two full-time instructors that handled more than 1,200 students in 2000. A listserv that began as a way to keep southwest Portland citizens informed about a development proposal has turned into a model forum for allowing activists to talk through technical and environmental issues surrounding neighborhood growth. And on the economic development front, Portland has made a significant government commitment to providing a place for businesses that sell Internet content or rely on the Internet for distribution.<\/p>\n\n<p class=\"wp-block-paragraph\"> <b>Main Lesson:<\/b> A technologically sophisticated city, in combination with strong commitment from city government, interested citizens, and an existing infrastructure of community development organizations, has taken identifiable steps to use the Internet to enhance economic and community development.\u00a0 In the wider community, the existence of many community development organizations makes the soil for community Internet initiatives that much more fertile.<\/p>\n\n<ul class=\"wp-block-list\">\n<li> <strong>Austin<\/strong> <\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\"> <b>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/b>Like Portland, Austin is a center for high-tech industry and a large number of dot-com start-ups, both of which have created considerable wealth in the city. Along with a core of city activists and an engaged city government, this has resulted in a flurry of initiatives to maintain Austin\u2019s status as a technology hub. \u00a0Examples include plans for a\u00a0 \u201cdigital downtown\u201d that promises to attract multimedia developers, lessening the pressure for urban sprawl.\u00a0 In the wider community, entrepreneurs are encouraging technology literacy for low-income people through the Austin Idea Network, and city government has started several initiatives of its own.\u00a0 Additionally, community activists have begun projects that have attracted government aid from all levels, federal, state, and local.\u00a0 But Austin has been hurt by the downturn in the dot-com economy.<\/p>\n\n<p class=\"wp-block-paragraph\"> <b>Main Lesson:<\/b> Good intentions and resources are not always enough. In spite of Austin\u2019s many assets, the dot-com shakeout has taken the wind out of some initiatives, such as the Idea Network.\u00a0 Austin also lacks a well-developed infrastructure of community development organizations, making it more difficult to implement community access initiatives.\u00a0 Austin\u2019s dearth of community development organization sets it off from Portland in this respect.<\/p>\n\n<ul class=\"wp-block-list\">\n<li> <strong>Cleveland<\/strong> <\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\">Cleveland remains a manufacturing city with no real reputation as a center for innovation or Internet activity.\u00a0 Activists in Cleveland have nonetheless made significant strides in shaping local government policy on community Internet access.\u00a0 The Digital Vision coalition\u2019s successful effort to get $3 million for \u201ccomputer boot camps\u201d from local government distinguishes it from other cities in the study (with the exception of Austin). Economically, Cleveland lacks the sort of entrepreneurial tradition that would help it make fast progress in the New Economy, but an accident of history\u2014it has abundant bandwidth in fiber-optic cables laid along railroad rights-of-way&#8211;could give it an advantage in business-to-business electronic commerce.<\/p>\n\n<p class=\"wp-block-paragraph\"> <b>Main Lesson:<\/b> Coalition-building in communities can succeed in procuring public funds for community technology projects.<\/p>\n\n<ul class=\"wp-block-list\">\n<li> <strong>Nashville<\/strong> <\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\">Even with a strong entrepreneurial ethic in the regional economy, the limited availability of venture capital and the dot-com shakeout means that no dot-com in Nashville struck pay dirt\u2014even fleetingly\u2014while other centers of the New Economy were hot.\u00a0 The city is actively promoting a downtown district for young entrepreneurs, but community Internet projects are only beginning to emerge in Nashville, and it lags significantly behind other places in this area.<\/p>\n\n<p class=\"wp-block-paragraph\"> <b>Main lesson:<\/b> City government is beginning to engage with issues of information policy and community Internet access.\u00a0 Neglect of these policy issues can be costly for cities, and those trying to make up for lost time must reach out to neighborhood groups to succeed.\u00a0 Fortunately, Nashville city government does appear to be doing this.<\/p>\n\n<ul class=\"wp-block-list\">\n<li> <strong>Washington, D.C.<\/strong> <\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\">The District of Columbia is a latecomer, with several promising initiatives just getting underway.\u00a0 Tax breaks for tech companies locating downtown and in a revitalized urban district may pay off, but in the distant future.\u00a0 The District does have a number of innovative community initiatives designed to bring technology access and workforce skills to low-income people.\u00a0 None of these, however, receive financial support from city government, nor do they appear to be on city government\u2019s radar screen.<\/p>\n\n<p class=\"wp-block-paragraph\"> <b>Main Lesson:<\/b> Playing catch-up\u2014especially with attractive suburban competitors in Maryland and Virginia\u2014is difficult.\u00a0 The plans for tech-based urban economic development seem sound, but the city\u2019s lack of attention to community Internet access is an unfortunate oversight.<\/p>\n\n<p class=\"wp-block-paragraph\">This report examines how institutions in the five cities studied are going about exploiting opportunities presented by the Internet. The cities were chosen because of the variability in their economic profiles and for reasons of geographical diversity.\u00a0 Portland, Austin, and Washington are all centers of high technology, although their specializations differ.\u00a0 Each has a high level of Internet penetration in its population.\u00a0 Cleveland and Nashville have lower Internet penetration levels, and high technology is less important to their economic bases.\u00a0 Cleveland is a manufacturing center; Nashville\u2019s economy has a large service sector.\u00a0 An appendix to this report contains data outlining the economic and demographic characteristics of each city, as well as a list of individuals interviewed for the report.<\/p>\n\n<p class=\"wp-block-paragraph\">As for the institutions chosen for study, it is important to underscore that not all institutions within cities have seized on the Internet.\u00a0 Exploring why some institutions or organizations have not yet chosen to use the Internet in any strategic sense would be an important research undertaking in itself.\u00a0 However, the focus here is on those institutions that <i>are<\/i> using the Internet for organizational goals.\u00a0 In broad terms, this meant looking at economic and community development organizations in the five cities that have sought to use the Internet to further their objectives.\u00a0 And as a practical matter, this turned the focus mainly to economic development officials\u2014both in the private and public sectors\u2014and community technology centers.\u00a0 The latter organizations have been hailed as new kinds of community institutions, and they are bearing the brunt of bringing Internet access to low-income neighborhoods.\u00a0 Frequently, however, such initiatives are linked to existing nonprofits, such as community development corporations (CDCs), many of which are devoted to providing affordable housing in low-income areas.\u00a0 As for city governments, the report profiles innovative uses of the Internet by such bodies, but it pays greater attention to whether local governments are creating hospitable environments for community-driven Internet initiatives to take hold.<\/p>\n\n<p class=\"wp-block-paragraph\"> <b>Social Capital and the Internet<\/b> <\/p>\n\n<p class=\"wp-block-paragraph\">One way of analyzing the impact of the Internet on institutions is to look at it in terms of \u201csocial capital,\u201d the phrase that social scientists invoke to capture the notion of social networks.\u00a0 Social capital, as described by Robert Putnam, constitutes \u201cthose features of social organization, such as trust, norms, and networks, that can improve the efficiency of society by facilitating coordinated actions.\u201d[1. Robert Putnam, <em>Making Democracy Work: Civic Traditions in Modern Italy<\/em>. Princeton, NJ: Princeton University Press, 1993, p. 167.] Social capital can be thought of in two ways: <i>bridging <\/i>social capital and <i>bonding<\/i> social capital.\u00a0 Bridging social capital allows disparate groups in society to come together in ways they normally do not.\u00a0 The civil rights movement, which brought young Northern whites into contact with Southern blacks, is often cited as an example of bridging social capital.\u00a0 Bonding social capital refers to organizations that deepen ties among groups with a lot in common; country clubs are good examples of bonding social capital.<\/p>\n\n<p class=\"wp-block-paragraph\">The specific way in which institutions facilitate cooperation\u2014and thus build social capital\u2014is through their effect on the cost of transactions.[2. Putnam, <em>Making Democracy Work<\/em>, p. 179.] For an entrepreneur who wants to obtain venture capital financing, it is costly to find a venture capitalist with interest in his project.\u00a0 It is also costly for the venture capitalist to determine the merit of the idea and business acumen of the entrepreneur.\u00a0 If a group wants to organize the neighborhood to change the mind of City Hall, it is costly to marshal interest, settle on a message, and deliver it to elected officials.\u00a0 An institution such as a neighborhood association or, in the former example, a network of entrepreneurs, can reduce the costs of organizing.\u00a0 In both of these examples, the institutions amount to the \u201crules of the game\u201d for carrying out transactions.\u00a0 In other words, the institutions are key sources of people and information for telling actors how things get done in a given environment and what the norms are for social cooperation.[3. Douglass North, <em>Institutions, Institutional Change, and Economic Performance<\/em>. New York: Cambridge University Press, 1990, p. 93.]<\/p>\n\n<p class=\"wp-block-paragraph\">The Internet can play a role in reducing transaction costs in two ways.\u00a0 First, through email or the Web, the Internet provides lots of information quickly and cheaply\u2014information that could aid cooperation. Second, the Internet, due to its relative novelty in organizations, can serve as a catalyst to overcoming the friction that is part of any collective undertaking.\u00a0This catalytic effect usually arises as organizations try to figure out how best to integrate the Internet into their missions. If the catalytic effect takes hold, it may result in the development of innovative Internet content that furthers the missions of organizations.\u00a0The net impact of the catalytic and \u201ccontent\u201d effects is a change in the \u201crules of the game\u201d that define how an organization functions.<\/p>\n\n<p class=\"wp-block-paragraph\">How can you tell when the \u201crules of the game\u201d are changing in an institution and, more importantly, if you can, how do you attribute it to the Internet?\u00a0The answers have to do with \u201cfoot traffic\u201d and content.\u00a0 With respect to foot traffic, the presence of Internet connections may bring new people to a place who might not otherwise go there.\u00a0 This can inject new life into an organization by stimulating social networks.\u00a0In this way, foot traffic is an indicator of the catalytic effect of the Internet on social capital formation. It is the presence of the Internet that shapes social capital, as people establish new networks of contacts as they congregate at places where the Internet is.\u00a0 <\/p>\n\n<p class=\"wp-block-paragraph\">As for content, Internet-driven projects may result in the creation of new Internet content that is devoted to addressing economic or community needs. Rather than the Internet shaping social capital, as is the case when the Internet spurs new social networks, the presence of social capital is shaping the Internet through the creation of specialized content. The creation of specialized content is a strong indicator of the connection between the Internet and social capital, because content creation only comes about if levels of trust about the Internet\u2019s potential have been established in the \u201cfoot traffic\u201d phase of the Internet\u2019s development within an organization.\u00a0 <\/p>\n\n<p class=\"wp-block-paragraph\">The \u201cInternet as catalyst\u201d theme, whereby the Internet\u2019s presence alters foot traffic, will figure prominently in this report.\u00a0 If a community organization decides to provide Internet access and training, the organization may draw new people to it.\u00a0This changes the character of the organization, while providing a different kind of place where people can gather. Similarly, economic development organizations have established new rules of the game in their cities by adopting social network strategies to encourage entrepreneurship.<\/p>\n\n<p class=\"wp-block-paragraph\">Content creation comes into play less frequently in this report, but its impact is important when it is present.\u00a0 When affordable housing providers come together in a city to develop a Web-based system to track the supply and condition of housing, this Internet content greatly improves operating efficiencies for clients.\u00a0 When neighborhood nonprofits help residents create Web pages for their home businesses, this reflects a growing level of trust in the neighborhood, and the content on the Web pages represents economic opportunities that benefit individuals and communities.\u00a0 It takes time for content to translate into higher levels of trust in a community, but Internet-driven social capital is not likely to arise unless the initial catalytic effect from Internet planning translates into content.\u00a0 <\/p>\n\n<p>[V]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction Communities and economic development groups across the country are exploring ways to encourage people and organizations to go online.\u00a0 They believe that good things will happen in their communities with greater Internet connectivity.\u00a0 They think it will help their children learn, improve the job skills of their workforce and make their community a more [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"sub_headline":"","sub_title":"","_prc_public_revisions":[],"_ppp_expiration_hours":0,"_ppp_enabled":false,"ai_generated_summary":"","relatedPosts":[],"reportMaterials":[],"multiSectionReport":[],"package_parts__enabled":false,"package_parts":[],"datacite_doi":"","datacite_doi_citation":"","_prc_seo_qr_attachment_id":0,"spoken_article_player_enabled":true,"displayBylines":true,"footnotes":"","prc_watchers":[],"_prc_fork_parent":0,"_prc_fork_status":"","_prc_active_fork":0},"categories":[],"tags":[],"bylines":[],"collection":[],"datasets":[],"level_of_effort":[],"primary_audience":[],"information_type":[],"_post_visibility":[],"formats":[458],"_fund_pool":[],"languages":[],"regions-countries":[],"research-teams":[526],"workflow-status":[],"class_list":["post-97472","post","type-post","status-publish","format-standard","hentry","formats-report","research-teams-internet"],"label":false,"post_parent":97463,"word_count":2334,"canonical_url":"https:\/\/alpha.pewresearch.org\/pewresearch-org\/internet\/2001\/11\/20\/part-1-introduction-16\/","art_direction":false,"_embeds":[],"watchers":[],"table_of_contents":[{"id":97463,"title":"Cities Online: Urban Development and the Internet","slug":"cities-online-urban-development-and-the-internet","link":"https:\/\/alpha.pewresearch.org\/pewresearch-org\/internet\/2001\/11\/20\/cities-online-urban-development-and-the-internet\/","is_active":false},{"id":97472,"title":"Part 1: Introduction","slug":"part-1-introduction-16","link":"https:\/\/alpha.pewresearch.org\/pewresearch-org\/internet\/2001\/11\/20\/part-1-introduction-16\/","is_active":true},{"id":97481,"title":"Part 2: Portland","slug":"part-2-portland","link":"https:\/\/alpha.pewresearch.org\/pewresearch-org\/internet\/2001\/11\/20\/part-2-portland\/","is_active":false},{"id":97335,"title":"Part 3: Austin","slug":"part-3-austin","link":"https:\/\/alpha.pewresearch.org\/pewresearch-org\/internet\/2001\/11\/20\/part-3-austin\/","is_active":false},{"id":97347,"title":"Part 4: Cleveland","slug":"part-4-cleveland","link":"https:\/\/alpha.pewresearch.org\/pewresearch-org\/internet\/2001\/11\/20\/part-4-cleveland\/","is_active":false},{"id":97356,"title":"Part 5: Washington, D.C.","slug":"part-5-washington-d-c","link":"https:\/\/alpha.pewresearch.org\/pewresearch-org\/internet\/2001\/11\/20\/part-5-washington-d-c\/","is_active":false},{"id":97367,"title":"Part 6: Nashville","slug":"part-6-nashville","link":"https:\/\/alpha.pewresearch.org\/pewresearch-org\/internet\/2001\/11\/20\/part-6-nashville\/","is_active":false},{"id":97379,"title":"The Internet, Cities, and Social Capital","slug":"the-internet-cities-and-social-capital","link":"https:\/\/alpha.pewresearch.org\/pewresearch-org\/internet\/2001\/11\/20\/the-internet-cities-and-social-capital\/","is_active":false},{"id":97385,"title":"Appendix A: Economic Profile of the Five Cities","slug":"appendix-a-economic-profile-of-the-five-cities","link":"https:\/\/alpha.pewresearch.org\/pewresearch-org\/internet\/2001\/11\/20\/appendix-a-economic-profile-of-the-five-cities\/","is_active":false},{"id":97391,"title":"Appendix B","slug":"appendix-b-2-2","link":"https:\/\/alpha.pewresearch.org\/pewresearch-org\/internet\/2001\/11\/20\/appendix-b-2-2\/","is_active":false}],"report_materials":"","report_pagination":{"current_post":{"id":97472,"title":"Part 1: Introduction","slug":"part-1-introduction-16","link":"https:\/\/alpha.pewresearch.org\/pewresearch-org\/internet\/2001\/11\/20\/part-1-introduction-16\/","is_active":true,"page_num":2},"next_post":{"id":97481,"title":"Part 2: Portland","slug":"part-2-portland","link":"https:\/\/alpha.pewresearch.org\/pewresearch-org\/internet\/2001\/11\/20\/part-2-portland\/","is_active":false,"page_num":3},"previous_post":{"id":97463,"title":"Cities Online: Urban Development and the 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Austin","slug":"part-3-austin","link":"https:\/\/alpha.pewresearch.org\/pewresearch-org\/internet\/2001\/11\/20\/part-3-austin\/","is_active":false,"page_num":4},{"id":97347,"title":"Part 4: Cleveland","slug":"part-4-cleveland","link":"https:\/\/alpha.pewresearch.org\/pewresearch-org\/internet\/2001\/11\/20\/part-4-cleveland\/","is_active":false,"page_num":5},{"id":97356,"title":"Part 5: Washington, D.C.","slug":"part-5-washington-d-c","link":"https:\/\/alpha.pewresearch.org\/pewresearch-org\/internet\/2001\/11\/20\/part-5-washington-d-c\/","is_active":false,"page_num":6},{"id":97367,"title":"Part 6: Nashville","slug":"part-6-nashville","link":"https:\/\/alpha.pewresearch.org\/pewresearch-org\/internet\/2001\/11\/20\/part-6-nashville\/","is_active":false,"page_num":7},{"id":97379,"title":"The Internet, Cities, and Social 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